Iraq Contracts

One of the good things about Congress going into control of the Democratic Party is sorely needed oversight. The Congressional hearings into Iraq contracts have begun.

"Profiteering during wartime is inexcusable," said Democratic Sen. Byron Dorgan, testifying at a Senate Armed Services Committee hearing. "This is the most significant waste, fraud and abuse we have ever seen in this country."

Lawmakers and the U.S. inspector general have accused KBR, formerly a division of Halliburton Co., which was once headed by U.S. Vice President Dick Cheney, of abusing federal rules in record-keeping on the current contract. Nearly $2 billion (€1.47 billion) in overpricing on the contract has been identified by Pentagon auditors and government investigators, lawmakers said.

Houston-based KBR is currently the U.S. Army's sole contractor for providing food and shelter to the military in Iraq, Afghanistan and Kuwait under the Logistics Civil Augmentation Program, or Logcap. The Pentagon has awarded more than $20 billion (€14.7 billion) over the last five years for the services contract.

Sen. Carl Levin, D-Mich., chairman of the committee, cited several examples of contract abuse, including KBR allegedly billing the federal government for millions of meals that were never delivered, overstating labor costs by 51 percent, or $30 million (€22.06 million), and purchasing between $40 million (€29.41 million) and $113 million (€83.08 million).

KBR Inc. is making billions and have no competitors. There is no need for them to overchange. They do so out of pure greed. This is all being done with the help of the White House. Vice-President Dick Cheney has been the architect of the Department of Defense using Halliburton.

One businessman with close ties to the Bush Administration tells Mayer, "Anything that has to do with Iraq policy, Cheney's the man to see. He's running it, the way that L.B.J. ran the space program."

It doesn't matter if the government can get better and more affordable supplies from another vendor. It's all about helping contacts. That is how Cheney moved his way up in the world. To his narrow world view; that is the respectful way of doing business. The lack of armored vechicles and other equipment are matters people in his inner-circle are too fearful to tell him about.